Obtaining a home loan is certainly not done within an hour after the application file is filed. On the contrary, sometimes it takes more than a month before the bank gives its answer. How does the processing of a home loan work? Are there solutions to possibly speed up the process?
When applying for a home loan, the borrower is required to provide a file consisting of several supporting documents. Among the most important documents is the essential sales agreement which marks the start of negotiations. This document is a legal act that legally certifies that the buyer and seller have agreed on a price for the house and have agreed on the terms of purchase of the loan. It is impossible to apply for financing without having this sales agreement. As soon as it is signed, the purchaser is subject to several deadlines. Already, you should know that he has a withdrawal period of 10 days to cancel the promise of sale without having to justify himself. The most important point to know about this compromise concerns the existence of a condition precedent.
This clause allows the buyer to reconsider his commitment and not to proceed with the acquisition of the property if his credit application has been rejected. The suspensive condition gives an average period of 45 days to the buyer to find a mortgage. It is possible to negotiate this duration and extend it up to 60 days. At maturity, if the borrower fails in his request for financing, the cancellation of the purchase takes place without penalty.
On average, you have to wait between 4 to 6 weeks before obtaining a mortgage. Why such a long wait? Simply because the process involves a multitude of steps. The first phase of a credit consists of competing to find the bank offering the best interest rates and loan conditions. To do this, simply use online comparators which are countless on the web today. This comparison must always be made on the basis of objective criteria:interest rate, total cost of credit, application fees, early repayment indemnities, price of borrower insurance, etc. After finding the right establishment, it's time to apply. The file must include, among other things, identity documents, pay slips, tax notices, the sales agreement, proof of address and account statements.
At this stage, the bank publishes an agreement in principle which indicates that it agrees to study the file. This opinion "subject to use" can lead to a refusal if ever the lending organization considers that the profile is not solvent. One of the last steps is to provide the loan offer which indicates all the terms of the credit. The borrower has a minimum reflection period of 10 days after receipt of this document to accept the proposal, which is valid for 30 days. If the offer suits him, the funds are then released.
As we have seen, you have to be patient before obtaining a mortgage. To try to reduce these delays, it is for example possible to approach online banks rather than traditional banks whose working methods are quite long. Online, all you have to do is send all the information on the spot without waiting for a meeting with the banker. Another equally effective tip is to use the services of a mortgage broker. Thanks to the intervention of this expert, the time saved is significant, because he uses the agreements made with the banks to shorten the deadlines. His help also allows the borrower to obtain a low interest rate on the loan to make substantial savings.
